- Blockchain security company Chyvers discovered the hacker’s method utilizing USDT, ETH, and privacy standards by tracking a portion of the pilfered money.
One billion HLG tokens, worth about $7 million, were lost as a consequence of a major smart contract exploit that affected Holograph, a prominent omnichain tokenization platform.
The project’s native HLG token had a significant decline of about 80% in the 24 hours that followed the incident, falling as low as $0.0029 before marginally rising to $0.0068 at the time of publication. In May, the community received the tokens by airdrop.
Token transfers between blockchains are made easier with Holograph, which keeps the original contract address intact. Asset issuers are now able to efficiently index cross-chain data thanks to this innovation. Notable investors including Mechanism Capital and Animoca Brands provided funding to the company.
The intrusion
The platform disclosed on X that a malevolent actor has gained access to its Holograph Operator Contract, leading to the creation of 1 billion HLG tokens.
Holograph’s team is actively working with exchanges to lock the affected accounts even though the initial exploit has been patched.
According to on-chain data, the coins’ approximate worth at the time of theft was $7 million.
On-chain data indicates that the exploiter’s address still has roughly 47.59 ETH, worth about $167,000 at the time of publication, despite these transactions.
The address was the one that received the minted supply, according to Matt Casto, a DeFi researcher at CMT Digital, who also stated that the attacker was probably a rogue developer who funded the address 26 days ago.
This problem occurs after recent ecological upgrades to the project. In order to improve cross-chain security and accommodate additional chains like Sei, Blast, Solana, Ton, zkSync, and ZetaChain, the platform intended to upgrade to LayerZero V2.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
